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TIME WARNER PRICES LIQUID YIELD OPTION NOTES OFFERING

 NEW YORK, June 16 /PRNewswire/ -- Time Warner Inc. (NYSE: TWX) today announced the pricing of the previously announced offering through Merrill Lynch & Co. of $2.1 billion principal amount at maturity of Time Warner Liquid Yield Option Notes (LYONs) due 2013, convertible at the option of the holder for shares of common stock of Time Warner Inc. The conversion rate of 7.759 Time Warner shares per $1,000 principal amount at maturity is equivalent to an initial conversion price of $48 a share of Time Warner common stock. The closing stock price of Time Warner was $37.25 a share on June 15.
 The gross proceeds of the offering will be approximately $782 million. Merrill Lynch has a 30-day overallotment option to purchase up to an additional 15 percent of the LYONs which if exercised in full would result in gross proceeds of approximately $900 million. The gross proceeds of the offering will be used together with available cash and equivalents to redeem or otherwise acquire a like principal amount of Time Warner's 8-3/4 percent convertible subordinated debentures due 2015.
 The LYONs offering of zero coupon senior notes has a yield to maturity of 5 percent and is the first take down by Time Warner under the shelf registration statement it filed in February 1993. Each note is being offered at $372.43 per $1,000 principal amount at maturity. The holder will be able to put any LYON to the company at the fifth, 10th, and 15th anniversary of the issue and the company will be able to satisfy its obligation by paying cash or issuing shares of common stock valued at its then market value or in any combination. The LYONs will be callable by the company at any time after the fifth anniversary of the offering.
 The offering is made through a prospectus, which may be obtained from Merrill Lynch.
 Time Warner is the world's leading media and entertainment company, with interests in magazine and book publishing, recorded music and music publishing, filmed entertainment, cable television and cable television programming.
 -0- 6/16/93
 /CONTACT: Edward Adler of Time Warner, 212-484-6630/
 (TWX)


CO: Time Warner Inc. ST: New York IN: ENT PUB SU: OFR

CK -- NY023 -- 2531 06/16/93 10:20 EDT
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Publication:PR Newswire
Date:Jun 16, 1993
Words:378
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